If the Real Business Cycle Theory Were Correct, Then the Recession

question 115

Multiple Choice

If the real business cycle theory were correct, then the recession that the U.S. experienced in 2008 was caused by:

• A) a war in the Middle East.
• B) a sharp increase in the price of oil.
• C) a negative shock in technology.
• D) a positive shock in technology.

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Definitions:

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Financial contracts that represent a portion of the standard S&P futures contracts, making them accessible to more investors due to their smaller size.

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The official price at which a security is traded on a stock exchange.

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A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, used as a financial instrument for hedging or speculation.

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Futures contracts based on the Dow Jones Industrial Average but with a smaller contract size, allowing for more accessible investment.